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Bearish three line strike is a candlestick trend continuation pattern, indicating the continuation of an existing downtrend; even after a day of high bullish activity. This is a less reliable and rare candlestick formation comprising four candlesticks; the first three are bearish candlesticks and the fourth one is a long bullish candlestick.

The requirements of a bearish three line strike candlestick pattern include,

• The pattern should be formed in an established downtrend.
• The first three candlesticks are bearish (black or colored) candlesticks with consecutive lower closes. These three candlesticks resemble 'Three black crows pattern'.
• The fourth day is a long bullish day, which opens below previous close and closes above the real-body of the first day candlestick.

The market is characterized by strong bearish trend. The fourth day is the profit taking day for shorts. The high bullish activity on the fourth day indicates that the price may reverse. But the existing downtrend is likely to continue as most shorts have covered their positions and are in search of new short entry opportunities.

Bearish three line strike pattern is a weakly reliable pattern; the pattern is reliable only when formed in an established downtrend. Reliability increases with increase in strength of the downtrend and with increase in real-bodies of candlesticks. Confirmation of trend continuation is definitely required, which can be a lower close, a gap down opening or a bearish candlestick on the fifth trading day.

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